If you reclaim mileage for business use from your employer the 45p & 25p rates will apply and won't incur tax.

No, not got time as live half the time on pembs, and one you do going you get your arse kicked!

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Who pays your extra insurance for business use?

I do, it's my responsibility to cover all costs to run the car other than the Fuel.

If your employer deducts private mileage from your salary at hmrc rates, and makes you fill in detailed mileage records between each job, then you shouldn't be taxed at all beyond PAYE on your car allowance.

If you don't fill in anything then yes you will be taxed. Hmrc will deduct the fuel from your tax free entitlement which is circa £5000 so your tax code would be 400 something and I'd expect to be an L code.

If your code ends with a K then you owe more than your allowance. Your coding notices will explain everything.

 

 

I'll be honest, you've lost me

 

at present they don't deduct private mileage just a monthly Fuel Deduction of £30 from my salary. (However they are going to change that and start deduction for actual miles post April) I record my business mileage in a diary for my own information. At the end of the tax year I think they estimate my mileage from the quoted odometer readings given when I fill up and send me a P11d which I then use to fill in a P87 form and send to hmrc.

 

before I started my tax code was 899, it went up to 914L (stopped bupa) followed by 944 and has since dropped to 912L but I haven't received a notification from hmrc for the most recent change (which was for Feb pay)

Edited 10 March, 201412 yr by acidstrato